Market Insight: Germany Energy Transition Investment Trends

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Executive Summary

Germany’s energy transition is accelerating, with renewables surpassing fossil fuels in power generation for the first time in 2024 and ambitious governmental targets set for 2030 and 2045. Yet the transition faces major headwinds, with grid bottlenecks, high energy costs and industrial competitiveness risks testing momentum. For investors, the landscape combines opportunity and complexity. Hydrogen, industrial decarbonization and digital grid solutions signal growth, but navigating political uncertainty, affordability concerns and infrastructure gaps will be critical to capturing value. Energy investors, firms and solution providers should read this report to understand the emerging risk and growth opportunities in Germany’s energy transition journey.
Germany’s energy transition is accelerating, but gridlocks and costs are clouding momentum
The German policy landscape provides continuity on climate ambition, but uncertainty on costs and reform
Germany’s grid faces structural and cost pressures
Firms should explore growth opportunities across hydrogen, industrial decarbonization and energy efficiency technologies 
Figure 1. Electricity generation in Germany by source: 2014-2024 (TWh)
Figure 2. Germany economy-wide energy transition policies

About the Authors

Isobel McPartlin

Isobel McPartlin

Analyst

Isobel is an Analyst at Verdantix, where she supports corporate decision-makers in navigating the energy transition through research on emerging energy solutions and net zero ...

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Ryan Skinner

Ryan Skinner

Research Director

Ryan is a Research Director at Verdantix, where he leads a team of analysts delivering research, data and advisory services that help clients navigate the fast-evolving landsc...

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